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Devil in detail of South Africa’s $8.5bn climate funding

A proposal by wealthy nations to mobilise $8.5-billion for South Africa to help reduce its dependence on coal has proved more complex than anticipated, which has stalled its implementation. The money was offered to South Africa at United Nations climate talks in Glasgow last year under a deal that was seen as a possible blueprint for helping other coal-reliant developing countries transition to using cleaner energy. Details of the types of financing that will be made available and the terms and conditions attached to it are still being hashed out, along with South Africa’s investment plans, said Barbara Creecy, the nation’s environment minister.

Bid window 5 could be reopened as most energy projects fail to reach financial close – Mantashe

Mineral Resources and Energy Minister Gwede Mantashe says the government is looking at reopening bid window 5 of the renewable energy independent power producer programme (REIPPP) in light that most projects have failed to reach financial close.  Bid window 5 is a critical part of the plan to end SA’s power shortage. The bidding closed in 2021, and it aimed to add 2 583 MW to the grid within the next two years. But, global events – such as the war in Ukraine and increased demand for renewable energy and storage components – have radically altered the input costs on which the bidders based their prices. 

South Africa fears deeper power outages as plants deteriorate

South Africa’s government is bracing for more frequent and longer electricity outages as the state-owned power utility’s aged and poorly maintained plants continue to deteriorate. The nation has been subjected to rolling blackouts, known locally as loadshedding, since 2008, with 4 000 MW of capacity currently being cut from the grid to ensure it doesn’t collapse. The ongoing energy shortages were a major contributor to the economy’s 0.7% contraction in the second quarter.

Eskom confirms 32% tariff request ahead of Nersa hearings

After updating some key cost assumptions, Eskom has confirmed that it will be applying for a 32% tariff hike for implementation on April 1, 2023. The State-owned utility is also applying for a 9.74% increase for its subsequent financial year. The increases are outlined in an addendum to Eskom’s fifth multiyear price determination (MYPD5) application, which contains changes to various key assumptions, including those relating to the cost and use of diesel for its open-cycle gas turbines (OCGTs), as well as independent power producer (IPP) costs.

South Africa lays out climate demands to rich polluters ahead of COP27

Developing nations expect rich countries to commit more funding to adapt to global warming and a financing mechanism to help them cope with natural disasters when they meet at the COP27 climate summit in November, South African Environment Minister Barbara Creecy said. Creecy was one of the prominent African voices before the COP26 event in Glasgow last year. She’s demanded affluent nations that have emitted the bulk of the world’s climate-warming gases commit more assistance to those most affected by the impact of rising temperatures.

Stage 4 until weekend as even more units break down at Kendal, Majuba

Eskom will be implemented at Stage 4 throughout Thursday and Friday, with only a possibility of lower stages from Saturday morning, Eskom said on Wednesday.  “Eskom teams are working around the clock to return units to service, but in view of the shortage of generation capacity and the need to carry out unplanned maintenance to return units to service, we unfortunately have to implement load shedding as a last resort,” Eskom spokesperson Sikonathi Mantshantsha said in a statement.

Nersa says Eskom is seeking deviation from IRP to build 3 000 MW of combined cycle gas

The National Energy Regulator of South Africa (Nersa) has confirmed that Eskom has not applied for a Ministerial determination for a 3 000 MW combined cycle gas power plant at Richards Bay in terms of the Integrated Resource Plan of 2019 (IRP2019), but is instead seeking permission to deviate from the IRP2019. On September 12, Nersa circulated an erratum to a consultation paper published for public comment on August 25 in relation to it providing concurrence to a Ministerial determination for the procurement of 3 000 MW of gas-fired electricity.

South Africa suffers 100th day of power blackouts this year

South Africa’s State-owned power utility has implemented power cuts on 100 days in 2022, with more to come. Eskom Holdings ramped up outages to so-called Stage 4 load-shedding, where it removes 4 000 MW from the grid, on Tuesday after three generation units at its Kendal coal-fired station about 100 km east of Johannesburg tripped. The utility expects to reduce this to 2 000 MWfrom Thursday until the end of the week. That will bring the total days of outages in the third quarter to 40, Bloomberg calculations show.